IMPROVEMENT OF ACCOUNTING OF REPAIRS AND MODERNIZATION OF FIXED MEANS AND METHODS OF THEIR MANAGEMENT
The article examines the economic essence of the concepts of repairs and improvements of fixed assets and accounting for repair and improvement of fixed assets on separate sub-accounts and the relationship of accounting with management methods such as planning, budgeting, forecasting, analysis and internal control. Ensuring timely renewal and modernization of fixed assets is a necessary element of asset management, without which effective production activities of the enterprise are impossible. The production activity of any enterprise is due to the laws of the reproduction process and the changes that occur. A significant, and in many cases the vast majority of capital investments of the enterprise are made in the form of buildings and structures, machinery and equipment, vehicles, production lines and more. This, in turn, leads to the need for calculation in fixed assets when creating an enterprise, when it is expanded, updated and so on. In a market economy, the main emphasis in the work of enterprises is shifted to identifying reserves and ways to reduce the resource intensity of production. This means, first, saving material resources, which is an important condition of today’s resource situation in Ukraine; secondly, it is one of the main ways to increase the income of enterprises. Only a well-built accounting system is able to provide the necessary information base for making rational management decisions. Today, the issue of rational use of fixed assets is given considerable attention at all levels of government. The rational use of fixed assets improves the technical and economic performance of the enterprise and requires constant recovery or improvement of these assets in order to increase future economic benefits. It is proved that today there is no unity of views on the economic essence of these concepts, general economic and accounting terminology, issues of organization of control over repairs and improvements and methods of their management. The basic forms of reproduction of fixed assets are considered, which is a necessary condition of any production, and reproduction, in turn, is the replacement of physical disposal and renewal of fixed assets, their increase in kind and value. All costs are accumulated on sub-account 152 “Acquisition (manufacture) of fixed assets”. However, in UAS 7 there is no clear definition of the reflection of repairs in the accounts. We consider it necessary to enter account 29 “Repair of fixed assets” and open sub-accounts 291 “Current repairs of fixed assets” and 292 “Overhaul of fixed assets” to account for the cost of repair of fixed assets. It is proposed to open to account 152 analytical accounts of the third order by type of repairs and improvements of fixed assets: creation of their own (economic or contractual way); technical re-equipment, modernization (modification, completion, additional equipment), reconstruction, etc.; purchase for money; free receipt of fixed assets; receipt in the form of a contribution to the authorized capital; receiving in exchange. Such information can be used to manage the enterprise and to analyze the types of improvement of fixed assets in the enterprise.
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